The government considers a ‘Universal Pension Scheme’ for all Indians to ensure retirement security.

The Central government is considering a Universal Pension Scheme, aiming to provide social security to all Indians. The Ministry of Labour and Employment is in talks with stakeholders to develop the project, which remains at an early stage without official details. This voluntary scheme would enable individuals, irrespective of their employment status, to join by making monthly contributions and eventually receive pension benefits.

This universal pension plan is different from existing schemes, as it’s open to all workers, even those in the informal sector. Many workers, like gig workers and domestic staff, lack pension benefits. The proposed Universal Pension Scheme aims to provide financial security to all, including those not covered by current pension programs. The Employees’ Provident Fund Organisation is likely to oversee the design and implementation of this scheme.

Reports indicate that the government may make monthly or quarterly contributions to pension accounts to boost enrollment. This mirrors schemes like the National Pension Scheme (NPS) and the Pradhan Mantri Shram Yogi Maandhan (PM-SYM), providing a monthly pension of Rs 3,000 post-retirement. Contributions for these schemes range from Rs 55 to Rs 200, matched by the government. The new initiative may combine some existing schemes into the Universal Pension Scheme, possibly including the Atal Pension Yojana.

Atal Pension Yojana, overseen by PFRDA, offers retirement benefits to low-income workers. Authorities consider using BoCW Act cess for construction worker pensions. This initiative, if successful, could significantly benefit millions, especially those in informal roles, by providing financial security during retirement.

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